KushCo Holdings Inc (OTCMKTS:KSHB) announced recently that it signed a manufacturing and distribution deal with California-based SunGrowth which provides customized, sustainable packaging.
The Agreement is part of KushCo’s previously revealed sustainability initiative and thus the focus on a partnership that will provide sustainable and biodegradable packaging for the cannabis industry. KushCo will immediately start distributing the SunGrown packaging throughout its massive network which consists of over 6,000 businesses that are its customers. The two firms also plan to jointly create new biodegradable products that will target the CBD and hemp industries.
The deal presents an opportunity for KushCo to leverage more growth and sustainability
KushCo aims to use the partnership to shift its focus towards renewable resources while also achieving more sustainability. The packaging solutions that will be made courtesy of the deal between the two companies are published through the ASTM International protocols.
“It’s no secret that we have been working to transform our portfolio to include eco-friendly packaging solutions. We are thrilled to now offer the first of those solutions in partnership with an industry leader,” stated Nick Kovacevic, the CEO of KushCo Holdings.
The newly announced agreement will be immediately accretive to KushCo’s performance
The manufacturing and licensing deal’s impact on KushCo’s topline as well as its bottomline will be immediate. It aligns with the company’s 12 million revenue expectation within the first two years of the deal. The firm also plans to hold an event on May 30th and California State Treasurer Fiona Ma will be present. The event will feature attendance by some of the executives of the major cannabis companies and they will discuss some of the major challenges in the industry, such as cannabis banking reform and regulations.
SunGrown CEO Whit Everett pointed out that the deal with KushCo will allow his company to reach a broader market for its biodegradable products. Everett also believes that the partnership strengthens its goal of offering an environmentally friendly option to the cannabis industry. The CEO also revealed that all of SunGrown’s products are child-resistant and state-to-state compliant. They can also be customized to suit the needs of the consumer.